mortgage and switching banks

audievo

Hi, I have a business bank account with Lloyds and also have my home mortgage through them.
I am thinking of switching my business account as I can get a deal I believe would be better for my business from elsewhere.
My mortgage deal ran out 5 years ago so I was switched to the standard variable.
The rate I get now is far lower than any mortgage I could replace it with so I am just sticking with it until the day the rates rise.
Could I face any problems with my mortgage if I take my business account away from Lloyds bearing in mind I will no longer have any accounts with them.

Thrugelmir

There's no reason to believe so. The two transactions are totally unrelated.

audievo

thank you. just a bit worried that if I take my business banking away from them they will somehow take offence and it will have some effect on my mortgage as my "deal" ran out some years.
My worry is that as I am not on any deal they could ask me to leave and get a mortgage elsewhere.

Thrugelmir

There's no sentiment in business. Hopefully the business side of LLoyds will make some attempt to retain your business. Though that depends on your profitability to them. As that's the key driver of customer retention. There's no sentiment in finance.

audievo

I would imagine I am quite profitable to them, I have quite a lot of money in the account and receive zero interest.
I have been with them 20 years and always got on well with them.
It seems my new business relations manager however doesn't like me much because I complained that in the year since she took over I have only managed to see her once for 3 minutes.
Also when I tried to negotiate a better deal on my charges she told me if I didn't like it I should go elsewhere.
Im sure retentions will have something to say however by then I will be gone.
Never mind, trying Santander today, see how that goes

Thrugelmir

audievo wrote: »

I would imagine I am quite profitable to them, I have quite a lot of money in the account and receive zero interest.

As a business account. There'll be looking for customers that borrow money. As there's where the profit is really made.

audievo

of course I understand that however they must make money of high credit accounts, surely that's where the money comes from to lend to borrowers.
If my money is gone that is less available for them to lend out.

Lloyds_Bank

audievo wrote: »

Hi, I have a business bank account with Lloyds and also have my home mortgage through them.
I am thinking of switching my business account as I can get a deal I believe would be better for my business from elsewhere.
My mortgage deal ran out 5 years ago so I was switched to the standard variable.
The rate I get now is far lower than any mortgage I could replace it with so I am just sticking with it until the day the rates rise.
Could I face any problems with my mortgage if I take my business account away from Lloyds bearing in mind I will no longer have any accounts with them.

Hi audievo. I'm sorry to hear you're thinking of closing your business account. If you were to close it, your mortgage would remain unaffected.

Thanks,

James

audievo

James, thank you for that reassuring reply.
Yes it is a shame and not something I am doing lightly.
I have had a business account with you for around 20 years and personal accounts with Lloyds/tsb even longer (although my personal accounts have been switched to tsb)
It seems inevitable now though as I have tried in vain for the last two weeks to sort it.
thanks again

amnblog

Let's not pretend they would even notice you have the two product ranges.

JimmyTheWig

audievo wrote: »

thank you. just a bit worried that if I take my business banking away from them they will somehow take offence and it will have some effect on my mortgage as my "deal" ran out some years.
My worry is that as I am not on any deal they could ask me to leave and get a mortgage elsewhere.

They may well take offence. They may see you as a less valuable mortgage customer. So they may, for example, not offer you such a good deal if you wanted to arrange a new rate.
But your original mortgage deal would have included the terms of the rate (SVR, or whatever) that you would go onto after the deal period had ended. They can't just tear up that agreement because they don't like the fact that you took your business account elsewhere.

Given that you don't seem to be wanting a new deal from them I see no difference to your mortgage in you keeping the business account or not.